Research and the I Ching
Research can usually tell us when the economy, industries or corporations are in the YANG or YIN cycle and when it is the right time to buy. But analysts rarely tell us when it is time to sell. The common belief is that the analysts are infallible. The question is, shall we follow their advise to the letter? Must definitely not. If there is one thing we must learn from the many crashes that have occurred in the last decades, is that we must be careful with the hype from Wall Street. I have learned, much to my dismay, as a financial consultant working for a major financial institution, how difficult it is for an analyst to lower his opinion of a corporation if the Investment bankers are about to issue paper for the same corporation. To do so would mean losing the business. The famous Chinese wall that is supposed to separate research from investment banking has always been a thorny issue for all financial institutions.
If we are going to choose an investment, let us combine the heart with the mind (think feel). That is, let us combine the I CHING’s advice with the analysts’ advice. This works both ways. If an analyst pitches a recommendation at us, as Warren Buffet would say, let us consult the I CHING and invest if the outcome looks favorable. On the other hand, if we consult with the I CHING, and get a good recommendation to buy a stock, then let us wait for the analysts to start putting out positive reports about the corporation before we buy. Otherwise, we might be buying way ahead of time and will be sitting on dead money for a long time. The same applies about negative readings. We should not sell if we have an investment and the I CHING tells us it is a negative one, unless the analysts start to lower the earnings estimates. In this case, the analysts would confirm the I CHING’s reading as well as the trend. When heart and mind work together (think feel) there is no room for stress.
